Store Research

Assembly Bill 188 (Pattee – 1959)

Chapter 4, Statutes of 1959

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Multiple sections pertaining to licensing of insurance producers were added to the Insurance Code in 1959 following legislative approval of Assembly Bill 188.(See Exhibit A, #1d)The measure was introduced on January 13, 1959 by Assembly member Alan G. Pattee, Chair of the Interim Subcommittee on General Insurance of the Assembly Committee on Finance and Insurance.(See Exhibit A, #1a and #3,documents PE‑1 and PE‑3)

Assembly Bill 188 was heard in the Assembly Committee on Finance and Insurance and the Senate Committee on Insurance and Financial Institutions, where policy issues raised by the bill were considered.(See Exhibit A, #2)There were two amendments proposed for this bill as it was considered by the Legislature, on January 29 and February 9, 1959.(See Exhibit A, #1b, #1c, and #2)However the January 29th amendments were rescinded.(See Exhibit A, #2)Following legislative passage by both Houses, the measure was approved by Governor Edmund G. Brown on February 27, 1959, and the Secretary of State recorded it on that date as Chapter 4 of the Statutes of 1959.(See Exhibit A, #1d and #2)

Assembly Bill 188 contained an urgency clause which provided that the bill would be effective immediately on enactment.(See Exhibit A, #1d, Sec. 20, pages 1832and 1833)To justify the urgency status, a statement concerning the purpose and need for the bill was provided as follows:

This act revises and codifies the provisions of the Insurance Code providing for the licensing and regulation of insurance producers applicable to fire and casualty agents, brokers and solicitors and to life disability and life and disability agents as formerly contained in Chapter 5, Part 2, Division 7, of the Insurance Code.

The primary purpose of this revision is to clarify and make more understandable the existing law by the elimination of ambiguities of substance, inconsistencies of meaning and of obsolete and superseded provisions.The scope of the laws encompassed in this revision and the extent and frequency of the changes which are proposed to such laws at each session of the Legislature indicate the urgent necessity for this measure.The consideration of the numerous bills proposing substantive changes in the laws affected by this revision concurrently with or preceding consideration of this measure could create new and more serious conflicts, inconsistencies and confusion.Therefore, in order to give full effect to the clarification of the law contained in this measure, to facilitate the legislative process and avoid the economic burden to the industry of possible litigation, it is essential that this act take effect immediately.